REGINA - The Government of Saskatchewan has approved SaskEnergy’s application to increase its commodity rate — the first increase in seven years after four consecutive decreases. While the new rate will be the lowest in Canada, the adjustment will increase the average residential customer’s bill by $6.16 per month.
Effective Nov. 1, 2021, SaskEnergy’s commodity rate changes from $2.575/gigajoule (GJ) to $3.20/GJ.
“SaskEnergy’s commodity rate increase is a reflection of the significant rise in natural gas prices. Gas utilities across Canada are facing the same challenge,” said Ken From, President and Chief Executive Officer, SaskEnergy. “Our customers want predictable and stable rates, especially during the cold winter months. SaskEnergy’s price management strategy allows us to deliver on this expectation, and offer the lowest commodity rate in the country to customers.”
The commodity rate is a pass-through of the costs to purchase natural gas from the market. SaskEnergy does not earn profit or loss on the sale of the commodity. SaskEnergy’s current commodity rate is the lowest it has been in more than 20 years.
In September, SaskEnergy applied to the Saskatchewan Rate Review Panel (SRRP) for an increase to the commodity rate. After independent analysis and feedback from the public, the SRRP recommended the provincial government approve the application.